There is still some way to go before the poor financial performance of the protection & indemnity (P&I) market in recent years can be said to have been adequately addressed, said HSBC Insurance Brokers.
Lloyd's broker and P&I specialist, HSBC Insurance Brokers says in its P&I Review 2004, that although the hard market environment of the past two years has done much to mend the situation, there is still some way to go.
Most clubs continue to show a technical underwriting deficit and reducing free reserves, which has led to another round of general increases.
The report says that while the percentage increases are now a little more favourable, there is nevertheless a huge disparity among the clubs, with increases ranging from zero to 20%.
The report concludes that the clubs must continue to try to raise premiums across the market in a fair and equable manner. "Underwriting balance and good levels of stable free reserves are the minimum requirements for the long-term viability of the mutual clubs."
